Start Planning a Retirement You’ll Be Thankful For

May 14, 2023

Thanksgiving is a time to reflect on what we are thankful for—and a well-planned retirement should be one of the top things on everyone’s list. After all, having a solid plan in place is one of the best ways to help ensure that you have a comfortable future.

If you haven’t started planning yours yet, you still have time. However, I wouldn’t wait: Inflation and market volatility can shrink any unprotected nest egg. The sooner you start and the more carefully you strategize your retirement, the better off you’re likely to be. Here are a few tips to help get you started.

Let’s examine the following topics:

  • Happy Thanksgiving from Ironclad Wealth Management
  • Living well now doesn’t guarantee a comfortable retirement
  • Inflation can reduce your future retirement income
  • A professional retirement plan can help ensure your future lifestyle

Happy Thanksgiving From Ironclad Wealth Management

As we all prepare to celebrate Thanksgiving, the team at Ironclad Wealth Management would like to take a moment to express our gratitude for you, our clients, and our partners. We are truly blessed to have the opportunity to work with such amazing people, and we wish you all a happy and safe holiday season. Thank you for your trust and support, and we look forward to continuing to serve you in the future.

Now, with that said, let’s talk business: Success as an entrepreneur feels good, right? The fact that we have to work so hard for it may add to that sense of accomplishment when you start seeing results and realizing your goals. Please let me congratulate you if you’ve made it to that point. At the same time, there’s something I’d better warn you about.

Living Well Now Doesn’t Guarantee a Comfortable Retirement

It’s easy to think, “My needs are well met now. I’m set for retirement, too.”

However, inflation causes the value of money to decrease—which can be especially harmful to small businesses. When prices go up, you have to spend more money to provide the same goods or services, but you may not be able to raise their prices by the same amount.

As a result, your profits can shrink, and you might even have to lay off employees. Inflation can also make it difficult to borrow money since lenders may require higher interest rates to cover the increased risk. Pair this with market volatility like we’ve seen this year, and the situation can quickly erode an unprotected nest egg, leaving you with fewer options in later life.

Inflation Can Reduce Your Future Retirement Income

Again, the good news is that we still have some time if you start preparing now with a financial advisor in Atlanta, Georgia. Unfortunately, some current retirees are dealing with the worst destruction this can cause. Many today have said that they regret how (poorly) they prepared for retirement.

Inflation, market volatility, and high-net-worth individuals can be a surprisingly dangerous trio. When the market is on a bull run, it’s easy to think that good times will last forever. However, history has shown us, over and over, that this isn’t always the case. Retiring with a comfortable nest egg is a popular goal, but market volatility can put a dent in those plans (even when your current pockets are deep).

That’s because fluctuations in the stock market can cause the value of your retirement assets to go up or down. For example, let's say that you have $100,000 in a 401(k) account: If the stock market declines by 10%, your account balance would fall to $90,000. While this may not seem like a big loss in the short term, it can significantly impact your long-term plans. Market volatility can also make it difficult to predict how much income you'll have in retirement.

Additionally, if you're planning to withdraw $5,000 per year from your retirement account, a 10% drop in the market would reduce your annual income by $500. This may not seem like a lot, but it can add up over time. To help offset the effects of market volatility, retirees should consider diversifying their assets and having a mix of stocks, bonds, and cash. This can help protect your retirement savings from market fluctuations, which improves your odds of having a reliable income in retirement.

Thinking of Switching Advisors? We Have Some Traits To Look for Listed Here

A Professional Retirement Plan Can Help Ensure Your Future Lifestyle

So, what’s the solution for protecting your future retirement income and potential financial legacy? The answer is “Working with a financial advisor.” An experienced one can help you create a retirement plan that takes into account our current economic challenges. Similarly, they can help you market-weather-proof your portfolio for the future as well.

Your retirement plan should also be tailored to your unique circumstances and goals. This means taking into account things like your age, investment portfolio, and desired lifestyle. By working with a professional, you can develop a plan that will give you the best chance of achieving your financial goals.

A professional retirement plan may also help maximize your retirement income and minimize your tax burden. This can be invaluable because affluent retirees can quickly find themselves in a higher tax bracket. That, in turn, can eat into their savings and reduce their standard of living.

So, using tax benefits may provide additional financial resources you will need to maintain your lifestyle after you retire. Additionally, a wealth-manager-designed retirement plan can also help you prepare for unexpected expenses: Things like long-term healthcare costs or inflation can seem to come out of nowhere when they start to impact your money.

The Sum Total

As a CERTIFIED FINANCIAL PLANNER™ in Atlanta, GA, Ironclad Wealth Management specializes in tax planning for entrepreneurs. The reason is that we understand the unique challenges that the affluent face regarding taxes (firsthand). So, we have a team of experienced tax professionals ready to help you minimize your tax liability.

We work closely with our clients to develop customized tax strategies for high-income earners. Contact us today to schedule a consultation.

If Patrick Can't Save Your Business $5,000 in Taxes, You Get Your Money Back

MGO One Seven LLC ("MGO One Seven") is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. All titles listed for individuals associated with Ironclad Wealth Management represent the individual's role with Ironclad Wealth Management, and not their role with MGO One Seven. Services are provided under the name Ironclad Wealth Management, a DBA of MGO One Seven. Investment products are not FDIC insured, offer no bank guarantee, and may lose value. Please visit our website for important disclosures.

Please note, the information provided in this presentation is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Please refer to the disclosure and offering documents for further information concerning specific products or services.

Nothing provided in this presentation constitutes tax advice. Individuals should seek the advice of their own tax advisor for specific information regarding tax consequences of investments. Investments in securities entail risk and are not suitable for all investors. This site is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.

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